When a lending institution requires the amount of interest scheduled to be paid be deducted from the amount available to the borrower it is called a

Name: When a lending institution requires the amount of interest scheduled to be paid be deducted from the amount available to the borrower it is called a
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A discounted loan is where the interest is calculated and deducted upfront from the principal amount before giving the loan to the borrower, reducing the actual amount received by the borrower.

When a Lending Institution Requires the Amount of Interest Scheduled